Owens Corning Inc (OC) vs Advanced Drainage Systems, Inc. (WMS)

Owens Corning Inc and Advanced Drainage Systems, Inc. are both Building Products & Equipment companies. Owens Corning Inc and Advanced Drainage Systems, Inc. are of similar size ($9.8B and $9.3B). Owens Corning Inc has negative trailing earnings, so its P/E is not meaningful; Advanced Drainage Systems, Inc. trades at 23.3×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 9.18% against −8.38%. Advanced Drainage Systems, Inc. has the higher net margin (12.4% vs −4.42%) and the higher return on invested capital (11.9% vs 1.80%). Both pay a dividend; Owens Corning Inc yields more (2.56% vs 0.62%). Across the 22 metrics below, Advanced Drainage Systems, Inc. leads on 14 and Owens Corning Inc on 8.

Valuation

Metric OC WMS Building Products & Equipment median
P/E n/m 23.33 23.33
P/S 1.01 2.85 2.09
P/B 3.04 5.22 2.85
Price to free cash flow 11.47 16.89 18.42
EV/EBITDA 7.40 12.37 13.29
EV/Sales 1.49 3.34 2.28
Earnings yield (4.30%) 4.29% 3.04%
Free cash flow yield 8.72% 5.92% 4.26%

Profitability

Metric OC WMS Building Products & Equipment median
Gross margin 25.03% 38.36% 31.88%
Operating margin 2.33% 19.62% 7.18%
Net margin (4.42%) 12.44% 4.11%
Free cash flow margin 8.79% 0.00% 6.41%
Return on equity (11.18%) 22.36% 5.95%
Return on assets (3.37%) 9.49% 3.90%
Return on invested capital 1.80% 11.90% 5.54%

Growth

Metric OC WMS Building Products & Equipment median
Revenue growth (TTM) (8.38%) 9.18% 6.27%
EPS growth (last fiscal year) (184.40%) (5.56%) (28.29%)
Revenue growth, 5-year CAGR 7.45% 9.00% 4.81%
Net income growth, 5-year CAGR 0.00% 18.13% 0.00%

Health

Metric OC WMS Building Products & Equipment median
Debt to equity 1.50 0.97 0.55
Current ratio 1.13 2.13 1.83
Net debt to EBITDA 2.14 1.80 1.45

Dividend

Metric OC WMS Building Products & Equipment median
Dividend yield 2.56% 0.62% 1.37%
Payout ratio — 0.14 0.28

Size

Metric OC WMS Building Products & Equipment median
Market cap 9.82b 9.25b 3.22b

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